Congratulations! You’ve accepted an offer on your property and are now heading towards closing. There are just a few more steps left between accepting offer and settlement.
In the last step, we spoke about what happens when you reject an offer. Thankfully you were able to come to terms with a buyer and now have a ratified contract.
Kudos, we couldn’t be happier for you!
At this point, both parties have signed the offer and agreed to everything from the sales price, earnest money deposit, home inspection period, the appraisal period, and how long the buyer has to receive financing approval.
After the Offer is Accepted
Once the paperwork is completed, we will send a copy of the executed (signed) documents to the title company for their review. The home inspection period and appraisal and financing period all officially begin on the next business day.
The contract will stipulate when the buyer must submit the earnest money deposit (EMD)to the escrow agent or transfer the funds via wire transfer. It will be held in an escrow account until the close of the sale.
You see the EMD is a good faith payment, to show the intention to follow through. The earnest money is credited to the buyer at the end of the sale to go toward the final purchase of the home.
If the sale falls apart, the escrow agent acts as an unbiased 3rd party.
What does this mean for you?
In case of a dispute, the escrow agent is responsible for releasing the EMD to the rightful party.
Within 24 Hour of the Accepting the Offer
Once we have a ratified contract the status will be changed in the MLS from ACTIVE to reflect it’s new status. The three pending statuses are:
If the contract is pending with contingencies it will be marked as either CNTG/NO KO (the property status is Contingent with no kick out. The property has a contract in effect with at least one pending contingency; none of the pending contingencies include a kick out clause.
CNTG/KO (The property status is Contingent with kick out. The property has a contract in effect. The contract has one or more contingencies and at least one of the contingencies includes a kick out clause.) Once we’re under contract all future showings and open houses will be canceled.
CONTRACT: The property status is Contract. The property has a contract in effect with no pending contingencies.
Active – The property status is available. No Contracts have been accepted.
Contingency – A condition that must be met before a contract is legally binding, or before a sale is to be completed. The contingency provides an out or an escape from performing if the condition is not met.
Earnest Money Deposit (EMD) – Funds given by the buyer and held in an escrow account until the real estate closing. In some cases, these funds are refundable if the loan fails to close, but if the loan does close, the purchaser is given credit at closing for the earnest money.
Home Inspection – An inspection made by a third party (not the buyer or seller) for a statement of condition on the property, i.e. structural and mechanical conditions. Many contracts to purchase are contingent on the buyer having a home inspection performed within a certain time period prior to closing.
Escrow – A neutral third party holds other people’s funds in a secure account for future use.
Title Company -The company that, for a fee, checks and ensures the title against liens, ownership claims, and title problems.
Questions? Please give us a call at 703-539-2053 or email us at [email protected].
Step 1: Hire a Realtor
Step 3: Declutter and Stage!
Step 4: Conduct a Pre-Listing Inspection
Step 5: Repairs
Step 6: Deep Clean
Step 7: Professional Photography
Step 8: We’ll Pre-Market Your Home
Step 9: We’re live on MLS, now what?
Step 11: Time for Showings
Step 12: Week One on the Market
Step 13: You’ve got your first offer!
Step 15: Offer was accepted! Congrats!
Step 16: The Home Inspection Period
Step 18: Select a Title Company
Step 19: Scheduling closing date
Step 20: Hire Movers, Start packing!
Step 21: Utilities Transfer
Step 22: Home Owner’s Insurance Cancelation
Step 23: Hire a Cleaning Service
Step 24: Buyer’s Mortgage Approval
Step 25: Final Walkthrough
Step 26: It’s Closing Time!
Step 27: Review Us
About the Author: The above article was written by Abraham Walker, Your Alexandria Virginia Real Estate Agent, helping clients market their homes to achieve high sales with a quick closing time is my main priority.
He’s the co-founder of Ask A Walker and can be found on YouTube, Facebook, and HERE on this blog.
Abraham can be reached via email at [email protected] or by phone at (703)539-2053.
He’s happy to answer all your real estate questions.
Thinking of selling your home? Check out my 20+ step process to selling your home. Or contact me now to start the home selling process. Same day appointments are available on a case by case basis.
Your Alexandria, VA Realtor, Abraham Walker, helps people sell and buy real estate in the following Northern Virginia area cities & neighborhoods: Kingstowne, Island Creek, Cameron Station, Overlook, Alexandria, Old Town, Belle Haven, Fort Hunt, Mount Vernon, Springfield, West Springfield, Burke, Lorton, Woodbridge, Lake Ridge, Manassas, Annandale, Fairfax, Arlington, McLean, Reston, Herndon and of course Vienna.